Immediate Business Supports needed to keep Restaurant & Tourism Sector afloat due to COVID-19
- The Restaurants Association of Ireland call for an immediate reduction of the VAT rate to 9%, plus business supports, for a period of 6 months
- 80% corporate booking cancellations due to COVID-19
The Restaurants Association of Ireland have today highlighted the need for immediate business supports to be put in place to protect the Irish Restaurant and Tourism sector.
This follows a warning from The Organisation for Economic Cooperation and Development (OECD) that the COVID-19 outbreak has plunged the world economy into its worst downturn since the global financial crisis.
Adrian Cummins, CEO of the Restaurants Association of Ireland, said:
“We have a potential recession situation on our hands due to the spread of COVID-19. Irish Food and Restaurant businesses were already struggling to stay afloat throughout 2020 due to the high costs of doing business, but if the OECD predictions come true, Irish businesses are due to fare much worse.”
The OECD further warned that the economic downturn could get much worse, with global growth potentially dropping to 1.5pc in 2020.
Immediate Business Supports are needed to keep Restaurant & Tourism Sector afloat.
The Restaurant Association’s top four asks of the government are:
- Immediate reduction of the VAT rate to 9% for Tourism and Hospitality businesses for a minimum period of 6 months
- Irish Banks must defer loan repayments for at least 6 months
- Revenue must introduce a moratorium on VAT payments
- Employer PRSI must be halved to support employers
Adrian Cummins, CEO of the Restaurants Association of Ireland, added:
“Decisive action needs to be taken immediately. My members need to know that the government supports them in this crisis and that the survival of Irish businesses is a top priority.
Restaurants and small hospitality businesses across the country have seen a jump in cancellations over the last couple of weeks. With restaurants, a cancellation is often non deferrable due to the time sensitive nature of meals and special occasions.
What we’re hearing from our members is that they are experiencing 80% corporate booking cancellations due to COVID-19.”
As per communications sent last week, The Restaurants Association of Ireland would also like to remind members to please follow the official advice of the HSE and observe hand washing, good hygiene and quarantine procedures. Please click here for updates https://www.gov.ie/en/campaigns/c36c85-covid-19-coronavirus/
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